DRS Data & Research Services (LSE:DRSA) Receivables Turnover: 3.67 (As of Dec. 2015)

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What is DRS Data & Research Services Receivables Turnover?

DRS Data & Research Services LSE:DRSA Receivables Turnover is 3.67 as of Dec. 2015. The stock has 4 warning signs investors should review.

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. DRS Data & Research Services's Revenue for the six months ended in Dec. 2015 was £8.92 Mil. DRS Data & Research Services's average Accounts Receivable for the six months ended in Dec. 2015 was £2.43 Mil. Hence, DRS Data & Research Services's Receivables Turnover for the six months ended in Dec. 2015 was 3.67.

DRS Data & Research Services  (LSE:DRSA) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.

DRS Data & Research Services Receivables Turnover Related Terms

DRS Data & Research Services Receivables Turnover Historical Data

* Premium members only.

The historical data trend for DRS Data & Research Services's Receivables Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

DRS Data & Research Services Receivables Turnover Chart

DRS Data & Research Services Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.24 12.25 6.59 7.60 18.53

DRS Data & Research Services Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
Receivables Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.71 1.62 4.11 1.57 3.67

DRS Data & Research Services Receivables Turnover Competitor Comparison

For the Specialty Business Services subindustry, DRS Data & Research Services's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

DRS Data & Research Services Receivables Turnover vs Business Services Industry

For the Business Services industry and Industrials sector, DRS Data & Research Services's Receivables Turnover distribution charts can be found below:

* The bar in red indicates where DRS Data & Research Services's Receivables Turnover falls into.


DRS Data & Research Services Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

DRS Data & Research Services's Receivables Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Receivables Turnover (A: Dec. 2015 )
=Revenue / Average Accounts Receivable
=Revenue (A: Dec. 2015 ) / ((Accounts Receivable (A: Dec. 2014 ) + Accounts Receivable (A: Dec. 2015 )) / count )
=12.477 / ((0.511 + 0.836) / 2 )
=12.477 / 0.6735
=18.53

DRS Data & Research Services's Receivables Turnover for the quarter that ended in Dec. 2015 is calculated as

Receivables Turnover (Q: Dec. 2015 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Dec. 2015 ) / ((Accounts Receivable (Q: Jun. 2015 ) + Accounts Receivable (Q: Dec. 2015 )) / count )
=8.923 / ((4.021 + 0.836) / 2 )
=8.923 / 2.4285
=3.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Receivables Turnover →
What does a Receivables Turnover of 3.67 mean?
DRS Data & Research Services (LSE:DRSA) has a Receivables Turnover of 3.67 as of Dec. 2015. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on DRS Data & Research Services and its competitors.
Is DRS Data & Research Services' Receivables Turnover too high?
DRS Data & Research Services' current Receivables Turnover is 3.67. The Business Services industry median Receivables Turnover is 6.25. DRS Data & Research Services' value of 3.67 is 41.3% below this industry median.
How does DRS Data & Research Services' Receivables Turnover compare to competitors?
DRS Data & Research Services' Receivables Turnover of 3.67 can be compared against companies in the Business Services industry. The industry median Receivables Turnover is 6.25. DRS Data & Research Services' value of 3.67 is 41.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Business Services company?
The median Receivables Turnover among Business Services companies is 6.25, based on 1,063 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DRS Data & Research Services's current Receivables Turnover of 3.67 is 41.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on DRS Data & Research Services and its competitors. For the Business Services industry, the median Receivables Turnover is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DRS Data & Research Services's current Receivables Turnover is 3.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DRS Data & Research Services stock overvalued right now?
DRS Data & Research Services (LSE:DRSA) has a current Receivables Turnover of 3.67. The current Receivables Turnover is 3.67 and 41.3% below the Business Services industry median of 6.25. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For DRS Data & Research Services (LSE:DRSA), the current Receivables Turnover is 3.67 as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

DRS Data & Research Services Business Description

DRS Data & Research Services PLC was incorporated on August 1, 1969. The Company is engaged in the provision of data capture services, the manufacture, sale and support of optical and image scanning equipment, design and printing of documentation used for data capture and associated software and bureau services.